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Please show excel formulas. Calculate the WACC for the following firm: Debt: 80,000 bonds with 5.1 percent coupon, paid semiannually, a quoted price of 114.24,
Please show excel formulas.
Calculate the WACC for the following firm: Debt: 80,000 bonds with 5.1 percent coupon, paid semiannually, a quoted price of 114.24, 25 years to maturity, and a par value of $1,000. Preferred Stock: 145,000 shares of 4.4 percent preferred stock with a price of $109 and a par value of $100. Common Stock: 3,400,000 shares of common stock with a price of $84 and a beta of 1.10. Market: The corporate tax rate is 21 percent, the market risk premium is 7 percent, and the risk-free rate is 3.1 percent. 80,000 100 Debt: Number of bonds Par value (% of par) Coupon rate Quoted price Settlement/Purchase Date Maturity date Coupons per year Par value (S) 5.10% 114.240 1/1/2000 1/1/2025 1,000 Preferred stock: Number of shares Dividend Price 145,000 4.4% 109 3,400,000 Common stock Number of shares Price Beta 84 1.10 Market Market risk premium Risk-free rate Tax rate 7.0% 3.1% 21% Debt YTM Aftertax cost Preferred Dividend Required return Equity CAPM | | Market value Weight Weight Times Cost Dreferred Bond Preferred Equity Total WACC=Step by Step Solution
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